Drop in Insured Vehicles on Nigerian Roads Signals Industry Challenges

The Chairman of the Nigerian Insurers Association, Mr. Segun Omoshein, revealed that the number of insured vehicles on Nigerian roads has seen a significant decline, dropping from 3.70 million in 2022 to 3.11 million in 2023.

The chairman shared this information during a press briefing on the industry’s performance in 2023 and the expectations and forecasts for 2024.

According to Omoshein, the 18.97% decrease in insured vehicles uploaded into the Nigerian Insurance Industry Database (NIID) reflects the challenging economic conditions in Nigeria.

The industry had anticipated a surge in NIID uploads, but the actual figures remained nearly the same level, indicating a tough year for everyone, including those considering insurance payments.

Omoshein attributed the decline in insured vehicles to the volatile nature of Nigeria’s economic environment and emerging risks, which have negatively impacted the public’s appetite for insurance services.

The insurers are now actively seeking initiatives to build public trust and exploring offshore reinsurance options to handle potential large claims arising from emerging risks.

The challenges faced by the insurance industry in Nigeria highlight the need for innovative approaches to attract more customers and build confidence in the insurance sector amid economic uncertainties and evolving risks.

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